What is a Margin Trading Facility (MTF) ? Margin Trading Facility (MTF) is an arrangement or a system where a trader/investor can buy shares or stocks by paying only a part of the total value of shares/stocks and borrowing the rest investment from a broker or agent. In MTF, investors are allowed to take a … Read more
Introduction Money management has been a concerned topic for everyone. Making investment now is not enough to meet our financial goals. We need and are regularly searching strategies to optimize our investments for our financial planning. One of such strategies that has been buzzing among the investors is ‘Systematic Withdrawal Plan(SWP)’. More than anyone, this … Read more
Introduction Stock markets across the globe are in a crazy run. In any situation, the stock markets are either showing the up-trend or they are at the down-trend. Understanding this cyclical nature of the financial market is essential for all the investors and other market participants. “Bull Market” and “Bear Market” are the two fundamental … Read more
What is a dividend ? Why is it important ? What are the different dividend decisions ? Why are dividend decisions important in Financial Management ? What is a dividend? Dividend is the part of the profit given to the shareholders in the form of cash or stock. It is a part of net income … Read more
Which one of the following is a disadvantage of the corporate form of business? 1. Limited liability for shareholders 2. Ability to raise capital through issuing stocks 3. Double taxation of profits 4. Ease of transfer of ownership Option 3 is the answer. Double Taxation is the disadvantage of the corporate form of business. To … Read more
Why is it important to have Insurance ? Introduction Insurance is a safety arrangement for unexpected problems like health issues or accidents. Insurance can be defined as a financial arrangement which provides protection against financial losses and uncertainties in exchange for regular premium payments. It is a contractual agreement between two parties i.e. individual/entity and … Read more
Introduction The BCG Matrix is a strategic management tool. It was developed by Boston Consulting Group as a framework for analyzing a company’s portfolio based on two factors. The BCG Matrix has a wide range of implications. This stands as a significant strategic framework for understanding the business and managing its unit/product portfolio. This matrix … Read more
The concept of the gray market involves conducting market operations outside the formal authorized setting. This concept is very common among the market participants. Sometimes exchange or trade of stock takes place prior to the stocks being listed in any authorized market, based on speculation. Such a market stands as a gray market. Some of … Read more
Introduction Gray market is a market economy concept. It can be defined as a marketplace where the transaction of goods (stocks and commodities) take place through unauthorized channels, which may not be officially recognized. In simpler terms, any market place that is not officially recognized, may or may not be legal, is a gray market. … Read more
Despite all the above characteristics which make Limited Liability Company (LLC) a favorable structure, there are some shortcomings (Limitations) of Limited Liability Company structure. Some of such disadvantages are: Growth Opportunities LLC structures have limited growth opportunities. LLC have capital structure restrictions and in case of any growth options, LLC cannot easily change its capital … Read more